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The document states no less than .004

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76 Posts.

16/09/16

11:05

Post #: 19200686
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Originally posted by NewToItAll ↑

The Directors have determined that offers under the SPP will be made to eligible shareholders, being those who are the registered holders of fully paid ordinary shares in the Company as at 7.00pm AEST on 15 September 2016 (Record Date), and whose address in the Company’s register is situated in Australia, New Zealand or Papua New Guinea

There will be many people thinking now... Great I can sell my shares at the current price of 0.6c, and my name is already recorded down to be able to buy more at the discounted price, possibly even at 0.4c. Great right, Free money!

However, that is not the case...

Has anyone else noticed this line ;

The issue price will be determined at the issue date of New Shares under the SPP based on a 20% discount to the volume weighted average price of Niuminco’s shares traded on the ASX during the 5 days immediately prior to the issue date of the New Shares, and a price which is not less than 0.4¢ ($0.004).

The issue date of the news shares is...
Allotment Date - 17 October 2016

So doesn't that mean that the price of the SPP will be based on the a 20% discount prior to the 17th October?
So what happens if the price by then is 3c?
Most would be thinking that is fantastic!... but not for those that already sold out expecting to buy back in at the SPP.
Because they would be paying 20% discount to 3c... or 2.4c each when they sold out at 0.6c!!!

Very smart move if you are big money... buy all the cheap shares now while people are selling them for the SPP... then bump the price up hard, and you just created a new support line at 5x what you paid for your shares!

I could be wrong, but I would definitely seek clarification on that before selling.

Opinion only.

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The document states no less than .004

NIU Price at posting: 0.6¢ Sentiment: None Disclosure: Held
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The document states no less than .004

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